Barclays upgrades Croda International stock rating to Overweight despite lowering price target

Published 26/09/2025, 08:02
Barclays upgrades Croda International stock rating to Overweight despite lowering price target

Investing.com - Barclays upgraded Croda International (LON:CRDA) (OTC:COIHY) from Equalweight to Overweight on Friday, while lowering its price target to GBP31.00 from GBP36.00. According to InvestingPro data, the company maintains strong fundamentals with a current ratio of 2.07, indicating robust liquidity.

The British specialty chemicals company has experienced a significant decline in its share price over the past four years, falling approximately 70% from its late 2021 peak, compared to a 26% gain for the FTSE100 during the same period. Despite the decline, the company has maintained dividend payments for 34 consecutive years, demonstrating financial resilience.

Barclays highlighted the recent involvement of activist investor Standard Latitude as a potential turning point for the company, introducing the possibility of more decisive strategic action while management has already begun implementing early turnaround steps.

The research firm noted that Croda’s valuation is currently at trough levels, with improving cost discipline and the potential for activist-driven divestments likely to improve the company’s outlook.

The new price target of GBP31.00 implies approximately 16% upside potential, with Barclays concluding that Croda’s risk-reward profile now skews more positive despite the lower price target.

In other recent news, Croda International has been the subject of varying analyst opinions. JPMorgan upgraded Croda International’s stock from Neutral to Overweight, setting a price target of GBP36.00. This decision followed a 10% decline in the company’s stock, despite Croda’s first-half 2025 earnings report meeting expectations and maintaining its full-year 2025 guidance. JPMorgan noted concerns about competitive pressures and potential regulatory issues in Croda’s pharmaceutical business as factors influencing market reactions. In contrast, Kepler Cheuvreux initiated coverage on Croda International with a Reduce rating, assigning a price target of GBP28.40. Kepler Cheuvreux cited a notable decline in Croda’s earnings and margins compared to its industry peers. These developments highlight differing perspectives on Croda’s financial health and future performance.

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